Compute the year-end retained earnings balance.
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The Dayton corporation began the current year with a
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- Roxannes Delightful Candies, Inc. began the year with a retained earnings balance of $45,000. The company had a great year and earned a net income of $80,000. However, the companys controller determined that it had made an error when calculating depreciation in the preceding year, resulting in an understated depreciation expense amount of $2,000. What is the ending retained earnings balance?For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the beginning of the year, its retained earnings had a balance of 95,000. During the year, Vidalia paid 11,000 dividends to shareholders. Its contributed capital was 56,000 at the beginning of the year, and it did not issue any new stock during the year. Vidalias assets total 237,500 on December 31 of the current year. What are Vidalias total liabilities on December 31 of the current year?Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended December 31, 2019 and 2020, contained the following errors: In addition, on December 31, 2020, fully depreciated machinery was sold for 10,800 cash, but the sale was not recorded until 2021. There were no other errors during 2019 or 2020, and no corrections have been made for any of the errors. Refer to the information for Shannon Corporation above. Ignoring income taxes, what is the total effect of the errors on the amount of working capital (current assets minus current liabilities) at December 31, 2020? a. working capital overstated by 4,200 b. working capital understated by 5,800 c. working capital understated by 6,000 d. working capital understated by 9,800
- Birmingham Company has been in business for five years. Last year, it experienced rapid growth and hired a new accountant to oversee the physical assets and record acquisitions and depreciation. This year, the controller discovered that the accounting records were not in order when the new accountant took over, and a $3,000 depreciation entry was omitted resulting in depreciation expense being understated last year. How does the company make this type of correction and where is it reported?Montana Incorporated began the year with a retained earnings balance of $50,000. The company paid a total of $5,000 in dividends and experienced a net loss of $25,000 this year. What is the ending retained earnings balance?A review of Anderson Corporations books indicates that the errors and omissions pertaining to the balance sheet accounts shown as follows had not been corrected during the applicable years. The net income per the books is: 2017, 10,000; 2018, 12,000; 2019, 15,000; and 2020, 20,000. No dividends were declared during these years and no adjustments were made to retained earnings. The Retained Earnings balance on December 31, 2020, is 50,000. Omissions Required: Determine the correct net income for the years 2017, 2018, 2019, and 2020, and the adjusted balance sheet accounts as of December 31, 2020. Ignore possible income tax effects.
- Farmington Corporation began the year with a retained earnings balance of $20,000. The company paid a total of $3,000 in dividends and earned a net income of $60,000 this year. What is the ending retained earnings balance?Dayton Corporation began the current year with a retained earnings balance of $32,000. During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $7,000. Compute the year-end retained earnings balance. View keyboard shortcuts EditViewInsertFormatToolsTable 12pt Paragraphuscan Incorporated had a retained earnings balance of $72,000 at December 31 of the prior year. In the current year, Tuscan reported the following results. Reported net income of $112,000. Cash dividends of $45,000 declared and paid. Tuscan discovered this year that it made a math error three years ago; to correct for this, $24,000 (net of tax) must be added to the current year’s beginning retained earnings balance. Revised an estimate of a machine’s salvage value. Depreciation increased by $2,200 per year. Calculate the retained earnings balance at December 31 of the current year. (Amounts to be deducted should be indicated with a minus sign.) TUSCAN INCORPORATED Statement of Retained Earnings For Current Year Ended December 31 Prior Period Adjustment 0
- During two consecutive balance sheet dates, accumulated depreciation for Durrand Corporation climbed by $11,258 while patents fell by $2,787. Depreciable or intangible assets were neither bought nor sold during the year. The financial statements also revealed a gain of $3,589 on the selling of property. The business had a net profit of $44,069 dollars. Determine the net cash flows from operational operations using the indirect approach, assuming there were no changes to the quasi current assets.The following information is from Amos Company for the year ended December 31, 2019. Prepare a statement of retained earnings for Amos Company. ∙ Retained earnings at December 31, 2018 (before discovery of error), $1,375,000. ∙ Cash dividends declared and paid during the year, $43,000. ∙ Two years ago, it forgot to record depreciation expense of $55,500 (net of tax benefit). ∙ The company earned $126,000 in net income this year.At the beginning of the year, the owner’s capital of SLG Company is $300,000 while its liabilities at the end of the year are $180,000. During the year, the owner withdrew cash for his personal use amounting to $80,000 and the results of operations showed revenues of $900,000 and expenses amounted to $320,000. What is the amount of SLG Company’s total assets at the end of the year? — $980,000 Question: If the total liabilities decreased by $25,000 during a period and equity increased by $30,000 during the same period, what is the amount and direction (increase or decrease) of the period’s change in total assets? a) $5,000 decreaseb) $5,000 increasec) $55,000 increased) $55,000 decrease
